The KwaZulu-Natal North Coast remains one of South Africa’s most sought-after and fastest-growing regions, despite challenges within the province in recent years.
Desirable infrastructure and amenities such as schooling, healthcare and medical practices, retail malls and centres, Blue Flag beaches, and strong urban precinct management, are magnets for property buyers, states Rainmaker Marketing’s first-ever Property Market Report.
“Younger, more established families are being drawn to the region for its educational, retail, and lifestyle benefits – as well as being in close proximity to King Shaka Airport,” says the property marketing agency’s director Stefan Botha.
Highlights of property market activity on KZN North Coast
– Semigration
Of the people moving to this region, the report reveals that 77 percent are from within KZN while there has also been an influx of residents from other provinces. New residents from Gauteng and the Western Cape make up 12 percent and six percent of these buyers respectively. Buyers from the rest of the country account for five percent of semigrants.
“The overarching attraction to relocating to KZN’s North Coast is attributed to exceptional educational facilities, robust security measures, quality healthcare services, diverse retail options, and efficient water and urban precinct management.”
– Buyer activity
Analysis of buyer activity shows that 36 percent of buyers in Ballito and 45 percent of buyers in Salt Rock fall into the 36 to 49 age group. This demographic, says Brenda Padayachee, head of market research at Rainmaker Marketing, is largely driven by young families seeking top-class schooling and lifestyle amenities.
Another interesting statistic is that 45 percent of buyers in Ballito and 41 percent in Salt Rock are over the age of 50, which calls for the emergence of diverse retirement offerings.
Ballito and Salt Rock specifically are experiencing resilient growth, with approximately 102 adults moving into the area each month. This equates to about 41 families per month.
– Market dynamics
Over the past 12 months, the average price of a sectional title unit within an estate exceeded those outside of estates by 48 percent in Ballito and 49 percent in Salt Rock, the report says.
In addition, the number of freehold sales occurring in estates exceeded sales outside of estates by 144 percent in Ballito and 190 percent in Salt Rock.
– Price point and affordability
The average household income in Ballito and Salt Rock has grown by 89 percent and 144 percent respectively since 2020. This reflects the increased affluence of the area and the growing property market.
– Year-on-year performance
Having been involved with the launches of some of the most prestigious developments, Botha says it has been “incredible” to witness the growth of an area that “reflects the quintessential South African lifestyle, including great weather, beautiful beaches, perfect waves, and the benefits of living along the golden KwaZulu-Natal coast”.
Top-performing estates include Brettenwood Coastal Estate, Seaton Estate, Dunkirk Estate, Simbithi Eco Estate, Zululami Luxury Coastal Estate, and Elaleni Coastal Forest Estate. All have experienced “excellent capital appreciation of up to 25 percent” for sectional scheme properties.
– Forecast
The future outlook for the North Coast appears “promising”.
“We believe that we’ve seen the peak in interest rates and anticipate a gradual decline over the next year. The expected relief on interest rates in 2024 will bolster affordability and stimulate North Coast sales beyond 2023 numbers.
“The region has also been attracting local and international developers, offering a diverse range of products to the market across various affordability brackets. The introduction of the R2.2bn Club Med Tinley is poised to contribute to significant job creation, attract international visitors, and enhance infrastructure.”
Not only this, but upcoming interchange upgrades – such as the Sheffield Beach project set to commence in 2024, signify a commitment to ongoing development.
The report expects most of the sectional title demand in both Ballito and Salt Rock to remain under R3m and indicates that estates will continue to dominate the market with 44 percent of Ballito homes and 57 percent of Salt Rock homes being within an estate.
“The implementation of a privately managed water supply between Siza and the municipality, coupled with holistic urban management and quality lifestyle amenities will continue to attract investors. The region’s sustainable initiatives, supported by a strong business community, a thriving chamber of commerce and backing from local businesses, are expected to fuel growth and further solidify the North Coast as a thriving economic hub,” Botha says.
IOL Business